GDP in the second quarter of China tops the expectations by 5.2 %, which reduces stimulation pressure

The Chinese economy has grown faster than expected in the second quarter and exceeded the Beijing goal of the full year of 5 %, relieving pressure on policy makers to intensify motivation to achieve growth.

Chinese GDP expanded 5.2 % in the second quarter, according to the Chinese National Statistical Office on Tuesday. While the growth rate defeats the estimates of economists who throw Reuters with a growth of 5.1 %, it is a slowdown from 5.4 % in the first quarter.

In June, retail sales growth slowed to 4.8 % from the previous year, compared to The 6.4 % increase is yearly in May. This number is also disappointed by the economists’ expectations of Reuters by 5.4 %.

Within this main measure of consumption, food sales increased by only 0.9 %, which is its worst performance since December 2022 when the country wrestled with the depths of the Covid-19s, according to wind information.

Industrial product expanded by 6.8 % from the previous year, compared to average estimates of 5.7 %.

Fixed asset investments with 2.8 % in the first half of this year against 3.6 % increase estimates in a Reuters poll. The decline in real estate investment deepened, as it decreased to 11.2 % in the first half of the year, compared to a decrease of 10.7 % in the first five months, while investment in infrastructure and manufacturing slowed.

The urban unemployment rate remained at 5 % in June, after touching the highest level in two years at 5.4 % in February.

“Although growth is likely to slow down in the second half of the second year, the government goal by 5 % may be within reach,” said Tianchen Show, senior economists in the Economic Intelligence Unit, who expected to refrain from politicians in late July.

Shaw added that Beijing can prevent the main motivation until September to organize a final boost to achieve the goal of growth if the momentum stumbles.

In April, US President Donald Trump defined Chinese imports to a high level of 145 %, which stimulates A round of motivation Takes from Beijing, including financial support for exporters who struggle to take requests, and subsidies to companies that employ new graduates and continuous expansion from a Consumer commodity trade program to enhance demand.

“We must realize that there are many unstable and unconfirmed factors in the external environment (

The two sides reached a truce in May, and they agreed to decline most of the definitions on each other. Their trade negotiators later set a framework after a meeting in London in June, which includes China to accelerate the approval of rare land minerals exports and Washington walk their restrictions on Beijing’s arrival to advanced American technologies and Chinese students’ visas to study in the United States

Beijing is facing a final date on August 12 to work on a permanent deal with Washington.

The Chinese leadership was revealed in May A large number of politics steps In its attempt to support the economy that is hit by the customs tariff, including reducing interest rates and injecting additional liquidity into the market.

Motivation measures have helped raise certain aspects of the economy. Each of the official and private investigative studies showed Improved manufacturing activity.

Exports also remained largely flexible in the quarter, as companies accelerated to convert trade into alternative markets. Its shipment linked to the United States 10.9 % contraction this year As of June, exports to Southeast Asian countries and European Union countries jumped – groups that China considers as the largest commercial partner – 13 % and 6.6 %, respectively.

This sent the Chinese exports to the United States to 11.9 % in the first half of this year, from 14.1 % during the same period last year, according to L. Customs data Released on Monday.

While the Chinese economy remained equal in general this year, supported by strong exports and support measures, economists are largely warned of more economic opposite winds in the future, calling for the leadership to launch the new financial motivation.

PBOC Consultant hang yes, in a report Last week, it was published with two other economists, that the authorities need to add up to 1.5 trillion yuan in the financial incentive to stimulate family spending and compensate the effects of American definitions, as well as reduce interest rates.

While recent economic data indicates that economic growth in China may lead 5 % in the second quarter, “deeper indicators such as soft consumer price index, poor purchasing indicators, cautious credit dynamics, and the high unemployment point in migrant workers to basic fragility, said economists.

Economists said that structural reforms on Chinese financial plans, pension system and the financial sector are necessary to ensure more balanced and sustainable growth.